Planning for Sooner-Rather-Than-Later-Retirement

I don’t write regularly enough for there to be a clear pattern in how my thoughts evolve on a given subject matter over time. Recent musings have led me to consider however that perhaps I would enjoy everything in life a little more if I were to work part-time, rather than full-time. I don’t seem to be capable of striking proper work balance and workaholism is definitely a problem I have. So, I am not FI yet, (although recent calculations put me at $200k NW next spring) how do I do that?

I gave up the apartment I was still paying for in December and moved in with Bob officially. He already is FI on his own, to where I strive to be, so our bills are already very low. He pays property tax, electricity and aside from the internet bill and home and vehicle insurances there are very little other bills.  I pay most of the groceries. Although we haven’t officially discussed it the arrangement seems fair to me. (I also suspect he pays little attention to where food actually comes from as long as there is food)

If you’ve read any bits of this blog you’ll know I’ve always kept my expenses as low as possible.

With no more rent eating into my budget, and with no more cellphone bill my expenses are really quite low and almost half of them are food-expenses.

I’ve been playing around with ideas on how to change my working situation to part-time, rather than full-time and a basic monthly budget would look something like this

Groceries $200
Fuel $80 (a lot less driving with no day-job)
Spending money $50
Restaurants $50
Medical $20
Clothing $50
Household $20
Car insurance $47.00
Life insurance $12.00
Birthdays $20
Christmas $20

Total expenses: $554.00, $6,648 annually.

Interest income at the end of 2018 should consist of $3,000 leaving me to cover $3,648 of my expenses which I can easily do.

Sidehustle incomes – minimal effort required – I anticipate in 2019
Misc income: $700 (possibly onward)
AIRBNB: $1,800
Sidehustle X: $1,000 (conservatively, $2,000 so far this year)
Total: $3,500 – $4,500

If I return to a simple cottage cleaning job in the summer I can easily earn $7,000 working weekends over the summer and cover all of my annual expenses, side hustle incomes would then cover my portion of our travel adventures and my interest income would remain with the principal allowing my savings to continue to compound. It’s likely my interest income will actually be quite a bit higher as I continue to add to my savings and investments. There is also a possibility of scaling the AIRBNB and doubling that income.

I haven’t accounted for any big purchases here, I purchased a 2014 Chevrolet Trax last month solving the vehicle-dilemma, I dont need to buy a house and together we can absorb any big bumps just fine.

So the gist of it? Once my current contract ends I don’t think I will be pursuing any further contract. That’s a little scary, but the numbers say ill be just fine. It’s really quite simple, keep your life simple and expenses low and things don’t have to get too complicated.

2017 Wrap-up

There are a million things that happened this year and I was so busy I had no time to write about it. The number #1 most coolest thing?

I made more money than I have ever before. For the past 8 orso years I have sat down at the end of the year and made a plan for my budget, set up major goals and estimated my income. For 2017 I expected my net income to be $24,352.44 for the year, which breaks down to $2,029.37/month (26 pays divided by 12). I always aim for the conservative side. :). While I haven’t yet tallied the totals of all my various jobs and income streams, I’m expecting to land somewhere around $60,000 gross for 2017!

I also intended to;

Save $5,377.68 in my RSPs

Save $1881.28 to my house savings

Save $7,209.16 for a vehicle. 

I had anticipated earning an extra $2,000 with my summer employment in 2017. In total I had planned to save $14,468.12…. I pretty much blew all that out of the water!

Since I scored a sweet full-time term job I was able to add quite a bit to my savings.

I usually keep track of my main savings goals in the side bar over there —->>>> and this year my savings finally made some big jumps, I used to update those bars at every dollar of progress but not so much anymore, 😀 too much work! At year end things looked like this;

2017 RSP contributions
Goal: $12,377.68
Total contributed for 2017: $16,808.33!
Total in %: 168%

2017 Extra income
Goal: $4,000
Actual: $23,000+ (net)
Total in %: 575%

2017 vehicle savings
Goal: $12,000
Total for 2017: $1,454.00
Total in %: 9.1%

2017 House saving
Goal: $1,881.28
Total for 2017: $5,000 (approximately)
Total in %: 265%

After adding in the investments I started in Lending Loop, in total I saved and invested approximately $26,262 during 2017. That’s a nice chunk more than the $14,468.12 I had budgeted for. 🙂

You’ll notice I totally abandoned saving for a vehicle, there really isn’t a specific reason for that, the money that should have been directed to that probably landed in the savings categories where I overshot my goals as I anticipate getting another year out of my car. I’ll be revisiting that in my plan for 2018 though.

The number #2 coolest thing? As a result of all dem savings;

I hit a $100,000 net worth! I’ve been working towards this for SO SO SO SO long. Since I sold my house in the fall of 2016, with no more debt holding me down and much lower housing costs I was really able to focus all my efforts on contributing to my RSP’s, TFSA, Savings and investments, and crossed the first 100k! I’m so blessed to be so rich, because man, that is rich compared to much of the world.

My YNAB file recently got corrupted and I lost a few years of data, I do make regular backups but honestly… even with monthly backups restoring a budget file with hundreds of transactions missing and accounts that constantly change (heyyyy travel-hacking) I was too lazy to go through that process. I don’t import my account data from banks, I manually input every transaction I make and keep my budget file completely offline. (I have not adopted the new subscription version of YNAB, I had subscription anything and will use YNAB 4 until I die… or until it really stops functioning) I like it this way, anyway, it does mean that since I hadn’t really kept an eye on or blogged about my networth goals that I don’t really have an accurate picture of how my networth increased over 2017. I do know that my GOAL for the start of 2016 was to have a networth of 72,000 but that I abandoned that goal.

As of today my net worth is at $111,018.64. I found a post back in April, 2014 where I logged my networth at $55,000 so in 3 years and 9 months I’ve doubled that, and sold my house converting its value.

I’m still ruminating on exactly what I’ll plan for in 2018, stay tuned. 🙂

What was your biggest accomplishment in 2017?